Emerging Countries and Public Funding

Abstract

The paper focuses on the elements that have prevented the governments of developing countries to establish a sustainable infrastructure. The focus on investments in the infrastructure of developing countries should be more significant. The analysis of the infrastructure development in developing economies comprises two main phases. The first step refers to the funding of infrastructure projects, which do not produce sufficient funds to cover the original investment. The second phase is the financing part, which refers to the aspects related to the capital markets functioning in developing economies (World Economic Forum, 2014). The present article analyses the financing and funding opportunities in emerging economies and demonstrates the possibility of advancing investments in renewable energy. Providers of long term funds, such as the New Development Bank can establish an infrastructure company with expertise in projects developed in emerging markets, in order to access significant equity investment that uses this potential of development.